SLOW START TO A NEW YEAR

With gyrations in the stock market, uncertain economic conditions in Europe, China and the rest of the world, although the USA economy is not doing too bad, we live in a global village. Southern California real estate values seemed to have peaked out and although interest rates are very low, prices are out of reach for many buyers, thus creating a slow down in sales volume. We are experiencing the same slow down. Only buyers that are seeking value added situations are doing deals these days. An opportunity to expand large 1br. apartments into a 2br. apartment and charge more rent, an opportunity to build additional homes on a vacant lot adjacent to an existing home, an opportunity to reinforce a ‘tuck under’ parking building that is selling under market is what we have been seeing lately over the last 3 months or so. Gone are the days of fast deals with seller-carryback loans, gone are the days of banks selling off scratch-and-dent loans are substantial discounts. We have not closed a loan in 2016 yet, but hope to have a closing by the end of the month. If you have a loan to sell, or need a quote on a new loan, please contact Larry at the office by e-mail, phone or fax.

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